$130 million approved for development of Bolivian infrastructure

With an operation for $130 million, the Andean Development Corporation (CAF) approved at its CXIV Board Meeting financing for the Transport Sector Support Program (PAST), and the Basic Sanitation Program, which the Bolivian government is executing through the National Roads Service, the Prefecture of La Paz Department, and the Office of the Vice Minister of Basic Services.

CAF Executive President Enrique García said that the agreement would improve the physical integration of Bolivia through the construction and upgrading of its land routes, and solve problems that affect a large number of communities, basically potable water supply and sanitation in the country´s main cities.

"Progress in road infrastructure is a fundamental tool for eradicating poverty and formulating a development model capable of actively and advantageously integrating the country into the globalized world economy. The environmental clean-up project will enable the Bolivian government to meet the target to half the deficit of access to basic services set by the international community at the Earth Summit," García said.

The CAF president said that the Corporation´s financial support is very important for Bolivia. With this support, the government is able to improve the quality of life of its people, and integrate and connect the country with its neighbors through an improved road system.

Building the road network

The Transport Sector Support Program includes nine projects for improvement, conservation and building of highways and over 20 bridges in the areas of Camargo, Arce-Sacramento, Tarabuco-Muyupampa, Hornuni-Caxata and Achacachi-Sorata.

The program is expected to reduce the rate of fatal accidents, and cut connection times and transport costs between the main cities and neighboring countries.

Improved connections with border countries will facilitate the creation of new consumer markets and production centers, which are currently underexploited. The investment should generate around 1,000 skilled and unskilled jobs.

The total duration of the operation is 15 years with a three-year grace period.

Improvements to public services

The Basic Sanitation Program includes investments in the following projects: water supply strategic plan for the Cochabamba Valley; rehabilitation of the Ravelo and Cajamarca channels in the city of Sucre; potable water service and sewage system for the city of Santa Cruz de la Sierra; and a sanitation program for Potosí.

All these projects include a natural disaster risk control and prevention program designed to increase the safety of the systems. The operation has a maximum duration of 15 years with a three-year grace period.